A well-written business contract that covers all necessary bases helps reduce the risk for your Michigan business and lowers the chance of conflicts arising. However, sometimes, the contents of a contract may prove open to interpretation, leading to a potentially costly business dispute.
Per Entrepreneur, one of the most effective ways to help your business avoid a contract dispute is to take some preventative measures early on. As the owner of a small business, you might consider taking the following two steps.
1. Have a notary present during the signing
Having a notary present is always a good idea when signing a business contract. The notary may be able to help you avoid contract battles in two distinct ways. First, many people are more thorough when reading through and signing a contract when a notary is present. This may lead to them asking any questions they may have upfront, preventing miscommunications. Second, having a notary there during signing makes it pretty much impossible for anyone who signs the contract to later claim they did not.
2. Be as clear as possible with language
A strong, effective contract helps protect both sides. Many contract disputes arise because opposing sides disagree over the language used in a contract, so if yours is vague or ambiguous in any way, it may come back to bite you. The clearer your contract is, the lower the chance of someone challenging it in court. If your contract includes overly technical terms, it may also serve you well to include clarifying information about what those terms mean.
Contract disputes have the capacity to cost your business time and money, but taking these two steps may help you avoid many of them.